The dispute centres on the money the broadcaster pays them to show comedy and drama programmes on its new digital channels, ITV2 and the recently launched ITV3. Writers claim that ITV is failing to pay them the full amount by exploiting a loophole in royalty agreements to 'sell' programmes to the new digital channels, thus reducing the money it owes them.

One producer, Excelsior, whose shows include the police drama A Touch of Frost, is said to be close to launching legal action, although calls to the company were not returned. Robert Banks Stewart, who wrote several hit television shows in the 1980s and 1990s, including The Darling Buds of May and Bergerac, has written to ITV asking for full payment for his shows, which are repeated frequently on ITV's new channels.

Banks Stewart claims that the company is 'selling' its shows to the new channels in order to avoid paying repeat fees. Under existing guidelines, writers and producers receive a fee of about 5 per cent of their original payment when shows are sold to third-party broadcasters, whereas repeats shown on the same channel are paid at a higher rate. The guidelines were drawn up to give writers a share of the money generated when formats were sold overseas, but Banks Stewart claims ITV is now using them to avoid the full cost of screening repeats.

Much of the content screened on the new channels has already been shown on terrestrial TV, although some new programming is also commissioned. Banks Stewart also says he has not received any money for the shows repeated on the digital channels, and claims that his letters to ITV have not been answered.

The digital channels are part of a plan formulated by ITV chief executive Charles Allen to bolster its overall audience share. Viewing figures at its flagship terrestrial channel, ITV1, are falling in the face of competition from hundreds of new digital channel as more households sign up for multi-channel TV. Take-up of satellite, cable and Freeview is growing.